Does replacement cost coverage pay for a full roof replacement in Georgia?

Replacement cost coverage pays for a full roof replacement on a Georgia homeowners policy only if the roof itself is rated on a replacement cost basis. Many carriers rate roofs separately from the rest of the dwelling and move older roofs to actual cash value (ACV) once they pass a certain age, regardless of how the structure and contents are settled. Checking the roof settlement basis specifically, not just the policy's general RCV/ACV setting, is the only way to know what a wind or hail claim would actually pay.

How much does the roof settlement basis change a claim payout?

For example, a hailstorm destroys a 12-year-old roof that costs $18,000 to replace. On an ACV roof settlement, the insurer subtracts depreciation for those 12 years, paying around $9,000 minus the deductible. On a replacement cost roof settlement, the insurer pays the full $18,000 to install a new roof, minus only the deductible. That gap, roughly $9,000, comes out of pocket on a single claim under an ACV roof.

How does replacement cost coverage work on the rest of the policy?

Most homeowners policies cover the home structure, called dwelling coverage or Coverage A, on an RCV basis, with the roof itself sometimes carved out onto its own settlement schedule by endorsement. Personal belongings (Coverage C) are a separate question: many basic policies default to ACV on contents unless replacement cost coverage is added, which is usually an inexpensive upgrade.

Does Georgia require homeowners policies to use replacement cost?

Georgia does not require it. The settlement method depends on the policy form purchased. Some entry-level policies default to ACV on both the structure and contents. Checking the declarations page shows the settlement basis applied to Coverage A and Coverage C. A full breakdown of the two approaches is at the RCV vs. ACV FAQ.

What else should Georgia homeowners watch for on replacement cost policies?

A dwelling limit that keeps pace with current Georgia rebuilding costs matters as labor and material prices rise. Being underinsured can trigger a coinsurance penalty even with RCV coverage, reducing the payout proportionally when the coverage limit falls below the required percentage of the home's rebuild cost.

Some belongings, such as electronics or collectibles, carry their own sub-limit even on a replacement cost policy. For example, a homeowner with $15,000 in jewelry insured under a base policy with a $1,500 jewelry sub-limit would receive only $1,500 for a total theft loss, regardless of the overall contents limit. Scheduling high-value items separately removes that ceiling.

For high-value homes, see how Chubb approaches home coverage or Georgia homeowners coverage available through Travelers. A free coverage review confirms whether the current policy, and specifically the roof, settles on replacement cost where it matters.